A and B are partners their respective capitals are Rs.50,000 and Rs.30,000. Interest on capital is agreed @ 6% p.a. B is allowed an annual salary of ₹2500. Profit during the year prior to calculation of Interest on capital but after charging B's salary is ₹12,500. 5% of net profit is paid to manager as commission. The amount of commission paid to manager is:

₹750

The correct answer is Option (4) - ₹750.

Profit during the year prior to calculation of Interest on capital but after charging B's salary = ₹12,500

B's salary = ₹2500
Profit before salary = 12500 + 2500
                             = ₹15000

Commission to manager = 15000 x 5/100
                                    = ₹750